August 15, 2007

EMERGENCY
CONTRACTING

PURPOSE:
To provide guidance on contracting in emergency situations, including planning
for emergency procurements and structuring major support contracts to
facilitate emergency support from contractors.

BACKGROUND: Terrorist events and natural disasters during the
past decade have highlighted the need for procurement flexibilities to permit
efficient and expeditious acquisition of supplies and services needed in
emergency situations. In 2006, Part 18 was added to the FAR to assist the
procurement community by referencing various procurement regulations pertaining
to emergency contracting. In addition, the Office of Federal Procurement Policy
has recently issued a best practices guide entitled Emergency Acquisitions, http://www.whitehouse.gov/omb/procurement,
drawing on the experiences of multiple agencies and the findings of several
oversight authorities. And finally, NASA’s own experience following Hurricane
Katrina yielded valuable ‘lessons learned’ and highlighted the need to take
proactive steps to better position the Agency to make expedient, efficient, and
proper procurements during the next emergency.

GUIDANCE:The
information provided in this PIC includes a mandatory requirement to review
existing contracts and solicitations and supplement the statements of work with
emergency contracting language. In addition, this PIC includes suggested best
practices and identifies sources of information on emergency contracting.

1. Pre-Emergency Planning.

a. Contractors play a critical role in supporting Agency activities during
an emergency. NASA relied heavily upon support contractors at StennisSpaceCenter,
with cross-over assistance from support contractors at other Centers, to ensure
that NASA facilities were secured, protected, and returned to operation after
Hurricane Katrina. Recognizing this critical role support contractors play in
emergency situations, it is prudent to include the emergency support
requirement in Agency contracts.

Contracting officers (COs) shall include language identical or similar to
the suggested language below, in the Performance Work Statements or Statements
of Work in contracts for major, on-site support activities. The language shall
be included in all new awards, and in existing
contracts when the remaining period of performance warrants. COs, in
conjunction with technical specialists, should identify appropriate
solicitations and contracts and revise them. Amendments and modifications
should be issued within 30 days from the effective date of this PIC.

Consideration should be given to adding the suggested language to contracts
that provide for support services likely to be needed immediately if an
emergency were to occur at the Center’s geographic location, such as:

·General
facilities support/base operations

·Property
management

·Security/guard/law enforcement services

·IT
services, especially IT infrastructure maintenance and service

Suggested Language:

Emergency Preparedness and Response

The Contractor’s
obligation may include resolution of unusual or emergency situations.The Contractor may be required to assist
NASA, within the general scope of work, but in currently unidentified ways, in preparation
for, or in response to emergencies. Obligations under this requirement shall
only arise when one or more of the criteria at FAR 18.001, enabling NASA to
utilize “Emergency Acquisition Flexibilities”, are met.If the emergency preparedness and response
requirements result in changes to the contract, all contract adjustments will
be processed in accordance with the Changes clause of this contract.

Contracts including this language should be listed, for ready
reference, in the Center Continuity of Operations (COOP) plans.

b. Numerous sources, in
critiquing the Government’s response to Hurricane Katrina, point to a general
lack of awareness of contracting vehicles that were already in place at
different agencies and could have been used quickly.OFPP’s Emergency
Acquisitions Guide emphasizes the need for agencies to familiarize
themselves with pre-competed contracts and pre-qualified vendors, and to
determine if the contracts can meet their needs in an emergency situation.Interagency acquisitions offer efficient
access to pre-qualified sources and the ability to leverage resources.Agency
contracting personnel are encouraged to periodically review interagency
contracts and to become familiar with the terms and ordering procedures of those
vehicles that may be useful in an emergency.Suggested sources include:

c. The Stafford
Act, PL 93-288, requires that preference be given to local firms, and the Local
Community Recovery Act, PL 109-218, establishes a local set-aside for specific
services including debris clearance, distribution of supplies, reconstruction,
and other emergency assistance activities.Contracting personnel are encouraged to identify local businesses
capable of providing supplies and services that may be required in an
emergency.Consider establishing Blanket
Ordering Agreements or Blanket Purchasing Agreements with local firms, if
appropriate.

2.Contracting During an Emergency.

a.Generally, contracts issued in
response to an emergency should be limited in value and length, to address only
the immediate emergency.While a broadly
scoped, cost reimbursable arrangement may be appropriate for immediate
response, the same arrangement will be totally inappropriate six months
later.Short performance periods with
short option periods should allow for continuous service.COs should retain maximum flexibility while
ensuring contracts meet Agency needs.

b.Firm-fixed-price contracts or
fixed-price contracts with economic price adjustment are encouraged.With payment tied to tangible results, the
protection afforded the Government under a fixed-price contract is even more
important in an emergency situation.

c.Existing contracts, either NASA
contracts or interagency vehicles, with pre-qualified contractors should be
used when possible.Adding the
requirement for emergency support identified above will position existing NASA
contracts for use during emergencies, and facilitate advance planning by key
contractors.

d.The procurement flexibilities
identified in FAR Part 18 should be used.In addition to setting forth specific emergency procurement
flexibilities that are available in limited circumstances, Part 18 also
identifies many generally available flexibilities.

EFFECTIVE
DATE: This PIC is effective as dated and shall remain in effect
until canceled or superseded.